California trucking company, affiliate file for Chapter 11 bankruptcy
Clarissa Hawes
4 min read
A California trucking company and its affiliate recently filed for Chapter 11 bankruptcy. (Photo: Jim Allen/FreightWaves)
A family-owned California trucking company, which provided earthwork, excavation and demolition services, along with its affiliated company, recently filed for Chapter 11 bankruptcy protection, citing cashflow issues after defaulting on its factoring agreement.
Miranda Logistics Enterprise Inc. of Los Angeles, and sister company, Grit & Gravel Inc., recently filed for bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California.
In its 21-page petition, Miranda Logistics lists its assets as up to $50,000 and liabilities as between $1 million and $10 million. The company states that it has up to 99 creditors and that funds will be available for distribution to unsecured creditors.
FreightWaves has reached out to Miranda Logistics and Grit & Gravel’s bankruptcy attorney Sean O’Keefe for comment.
The three largest creditors with nonpriority unsecured claims against Miranda Logistics are Mission Valley Bank (MVB) of Sun Valley, California, owed nearly $3.5 million; MCB Trucking of Mission Hills, California, owed nearly $263,000; and 818 Trucking of San Francisco, owed $234,000. Miranda Logistics is disputing these claims, according to the petition. It also owes several California-based trucking and equipment companies, according to its bankruptcy filing.
In its petition, Grit & Gravel lists its assets as up to $50,000 and liabilities as between $1 million and $10 million. The company states that it has up to 99 creditors and that funds will be available for distribution to unsecured creditors. The company lists its top three creditors as Mission Valley Bank, owed nearly $2.5 million; Clean Harbors Environmental of Dallas, owed almost $673,500; and MCB Trucking is owed nearly $181,000.
The family-owned companies were founded in 1992 by Marco Miranda, who serves as CEO and chief financial officer, and his sister, Stephanie Miranda, co-founder and chief operating officer.
According to Stephanie Miranda’s declaration in the bankruptcy case, the entities entered into a factoring agreement in March 2023 with MVB. She claims that although “MVB purports to purchase the [companies] receivables, one hundred percent of the ‘risk of loss’” remains with the Miranda Logistics and Grit & Gravel.
“If the vendors that owe the receivables purchased by MVB fail to pay these debts, [Miranda Logistics] is still obligated to pay MVB 100% of the shortfall,” she stated in court filings.
At the time of the bankruptcy filing, Miranda said that Miranda Logistics owed around $2.8 million under the factoring agreement with MVB, which secured liens against the entity’s receivables and equipment, totaling around $10.6 million, according to court documents.
She estimated that the logistics company’s gross revenue for 2024 was around $18.5 million and recorded a net income of around $1.2 million.
Court filings state that startup costs and the expenses the companies incurred to support its rapid growth caused cashflow shortfalls, which caused Miranda Logistics and Grit & Gravel to a default under the factoring agreement with MVB, which initiated collection action against the companies.
In December 2024, the companies claim they became aware that MVB was contacting its customers and demanding that they remit their payments directly to MVB instead of Miranda Logistics and Grit & Gravel, Miranda claims in court documents, which forced the entities to file for Chapter 11 bankruptcy protection as it was unable to make payroll to its employees, amounting to around $27,000. The Mirandas also own a payroll company, Staffers Unlimited Inc., also based in Los Angeles. The company did not file for bankruptcy protection.
A court date is set for Jan. 28 after Grit & Gravel filed its motion in federal court to dismiss its Chapter 11 case, claiming MVB’s pre-petition collection action “froze a material part of [its] receivables and effectively deprived [it] of the ability to continue business operations,” according to court filings.
After its receivables were frozen, Grit & Gravel claims it was forced to cease operations and terminated its employees on Dec. 28, 2024.
A creditors’ meeting is slated for Jan. 29
Miranda Logistics operated 40 power units, and had 25 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.
Miranda Logistics trucks had been inspected 18 times, and six had been placed out of service in a 24-month period, resulting in a 33% out-of-service rate. This is significantly higher than the industry’s national average of around 22.3%, according to FMCSA.
The trucking company’s drivers had been inspected 20 times over the same 24-month period, none of its drivers being placed out of service. The national average is around 6.7%, according to FMCSA.
U.S. Bankruptcy Judge Vincent Zurzolo has slated a status hearing for Miranda Logistics and Grit & Gravel for Feb. 13.
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